How much will my mortgage go up?

What decides how much it goes up

Three things decide the rise: how much you owe, how many years you have left, and the gap between your current rate and the new one. The same rise in rates costs more on a bigger balance, and slightly more again when there are fewer years left, because more of each payment is interest.

On an interest only mortgage the rise is simpler and sharper: your payment moves in line with the rate. Each extra percentage point on £200,000 adds about £167 a month.

A worked example

When your payment could go up

On a fixed rate, your payment stays the same until the deal ends. It can then go up if you move onto your lender’s standard variable rate, or if today’s deals are higher than your current rate. On a tracker or variable rate, it can go up whenever Bank Rate or your lender’s rate rises. See what happens when your fixed rate ends.

Ways people soften a rise

Securing a new deal before your current one ends avoids a spell on the variable rate. Overpaying while you are on a low rate shrinks the balance the new rate applies to, and can move you into a lower loan to value band. Some people choose a longer term to lower the monthly payment, although that means paying more interest overall. An FCA-authorised mortgage adviser can tell you which fits your circumstances.

If you are worried about keeping up with payments, speak to your lender early. Lenders must treat you fairly and can discuss options with you, and free help is available from MoneyHelper.